Oil Found in Southern Colombia

BOGOTA – Colombian state oil company Ecopetrol said Monday that it has found crude oil at an exploratory well in the southern province of Huila.

Drilling began in January at the Nunda-1 well, located in the municipality of Tello, Ecopetrol said in a statement.

The well, which is 100-percent held by Ecopetrol, produced 92 barrels per day in initial tests. The quality of the oil is 30 degrees API.

The higher the gravity degree on the 10-50 API scale, the less dense the oil and the more easily it can be refined into fuel.

“Ecopetrol will begin appraising the find in the weeks ahead, with extensive tests planned in order to determine the production potential of the Honda formation and the volume of recoverable hydrocarbons,” the company said.

Colombia’s largest firm, Ecopetrol is one of the world’s 40 biggest oil companies and ranks fourth in Latin America.

Ecopetrol owns Colombia’s largest refinery, accounts for more than 60 percent of domestic production – an average of 750,000 bpd – and also maintains exploration and production operations in Brazil, Peru and the U.S. Gulf of Mexico.

The state-controlled giant plans to invest more than $8.5 billion this year, with more than half of the total earmarked for exploration and production efforts.

Ecopetrol had profits of $4.4 billion in 2010, up 59 percent from the previous year. EFE
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